38 Studios declares bankruptcy

Curt Schilling's 38 Studios files for bankruptcy.

This morning, Curt Schilling's 38 Studios filed for bankruptcy after a long struggle that included missed payments and a complete layoff of all employees.

Rhode Island police told the Providence Journal that they would be joined by the attorney general's office, the U.S. Attorney's office and the FBI in launching a formal investigation into Schilling's video game company.

In a statement to the Journal, 38 Studios said, "This action comes after several weeks when the company has reviewed, considered and received the recommendations and advice with respect to potential avenues for relief that are currently available. After ongoing negotiations with the State of Rhode Island and potential investors and other interested parties, the Company has been unable to find a solution to the current stalemate."

Get caught up on Polygon's coverage of 38 studios here.